Problem

Compute the following ratios for the current year and the prior year. Show the appropriate...

Compute the following ratios for the current year and the prior year. Show the appropriate formulas in the first column. Show all supporting computations in the second and third columns.

Ratio

Gross Profit

Formula:

Current year

Prior Year

Inventory Turnover

Formula:

 

 

Current Ratio:

Formula:

 

 

Debt to Equity

Formula:

 

 

Return Assets

Formula

 

 

Return on Equity

Formula:

 

 

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